New vision, new strategy, new energy: a message from Lomiko CEO and Director Belinda Labatte

Responsible Critical Minerals

Our goal is to create a new energy future in Canada where we will grow the critical minerals workforce, become a valued partner and neighbour with the communities in which we operate and provide a secure and responsibly sourced supply of critical minerals. Critical minerals of interest include graphite, lithium, REE, PGMs and others that are deemed essential and under-supplied for our new energy and technology future.

Consider that the United States National Mining Association has declared that the country has seen a 113% growth in the volume of critical minerals needed for importation since 1995 and is 100% reliant on imports for 14 of the 35 critical minerals, and 50% import reliant for 17. Canada is well endowed with a wealth of mineral resources, including graphite, where Canada represents 70% of projects globally under development and also in global under-supply with 50% deficit as as percent of market demand by 2030.

Next Steps at La Loutre

With studies of our 100% owned La Loutre graphite property in Quebec underway to de-risk and improve the technical, social, environmental and economic profile of this asset, Lomiko is poised for growth with this project. In preparation for its Prefeasibility Study at La Loutre, Lomiko is developing an infill drill program to increase confidence in its mineral resources and confirm the tonnes and the grades within projected open pit shells. Also, the infill program will provide core data for the next level of the metallurgical studies, which would further de-risk and provide input into the processing plant design.

In early 2022, geotechnical testing and drilling would take place to inform infrastructure designs, including the open pit, waste and codisposal facilities and plant designs. Lomiko has initiated baseline studies starting in August 2021. Baseline data collection, including water flow and water quality testing, will continue into 2022, as well as water bodies and wetlands studies, plant and animal studies, and noise and air assessments. All those studies will inform the base for the Environmental Assessment report.

We also intend to follow up on two other showings within the La Loutre land package. The selection of additional exploration drill targets is currently underway.

Building a New Energy Company

Lomiko also has conviction in a hub and spoke approach as we continue building a new energy company in Quebec, Canada: for the new energy vehicle to drive, the wheel must see an equal amount of opportunity and engagement created with each spoke of community, environment, investor and public stakeholders.

The Company is currently in a good cash position, with no debt and has the opportunity to continue to improve its capital structure from a good foundational base. As we further develop the programs at La Loutre and Bourier, the team will continue to focus on strong internal controls and cost management to support our growth as a new energy company.

A bright future for Lomiko

In conclusion, our challenge, to reach even 50% of EV penetration in vehicles in Canada; we require a 20x increase in battery supply, let alone the 100% EV penetration rate announced by the Federal government for 2035. Renewable energy super-centres, longer life batteries and charging stations can and should be sourced from critical Canadian minerals.

This context has a new framework altogether: we will create a people-first, responsibly sourced, secure and stable supply of critical minerals assets where projects are developed alongside communities and with all the innovation and ingenuity required to ensure the projects have a net positive impact on the environment and the communities we serve. This is our manifestation and vision.